I just started reading through blizard’s other thread regarding this system.
I can’t post links but the topic is archived under “Holy Grail” in the Expert Traders and Automated Systems forum called “Premji 30 pip scalper”.
Apparently, there was an EA, but I can’t imagine doing this automatically. I’m usually not in a trade longer than 5 minutes if I can manage it and given how quickly it can turn I need to be the one to pull the close order trigger if I want.
Interesting though, for other newbies like myself who want to follow the history of this system’s development.
I am a newbie and have been trying your technique, had a few sucessful trades and keep trying it to see if I can recover my losts in the past years…
I wanted to know if you have Zee Zee indicator with an alarm feature at the overbought and oversold. So, I won’t miss the opportunity. Sometimes I fell to sleep sitting in front of the computer and missed the opportunity, watching it missing out on 20 30 pips gain.
well…
i know blizz didn’t use any automated arrows but i think he mentioned good enough for this system, well i have been trying some other system but from now i am trying your system too.
Awesome, I’ve been trading this system on my live account for almost a year now, with great results. Still using the fib levels as my TP points. This system works well on GBPUSD, EURUSD, USDJPY and AUDUSD during the asian session, 1M and 5M time frames I find.
I believe Bliz simply manually added those arrows to show where the entry is at. The indicator doesn’t paint them. You could find a CCI indicator out there that paints arrows for you, such as the Trade Builder software which costs money, but highly recommended. Personally I use Trade Builder to show me when price is in the overbought/sold zones and then I simply wait for the setup as described in post #1. This way, I’m not glued to my screen, I can do other things while I wait for the OB/OS zones to be reached. Once price gets into the OB/OS zone, it doesn’t take long for the setups to happen. On the 1M time frame, it could take 5-10 mins for the setup. Staring at the screen for 5-10 mins isn’t as bad as sitting there for 2 hours or more waiting for the same thing in my opinion.
How does your average TP’s on the fib levels compare to the ATR, say setting 14 periods?
This looks very interesting, what is your win/loss ratio? And what percent of your account do you risk? Do you still use 7 -8 pip SL? Do you think this is good enough, with some practice, to risk 5% of account per trade, including both lots?
Thanks.
don’t like to be so naive, but can someone tell me what the “daily pivot point” is referred to in post 1, i.e., “Also, take into strong consideration the current price in relation to the daily pivot.” is this an indi, just a line drawn at some calculation…? appreciate any help. thanks.
I haven’t considered using ATR for my take profit levels. How do you go about calculating using that indicator?
I never really looked at my win/loss ratio, but I can say it’s at least 70 to 80% win rate. I always use 6% of my account, however, I divide that up by two. Each trade is only 3.0% of my account. I’m comfortable with the risk/reward ratio to trade at that percentage. As for stop loss, I use the swing high/lows, on the 1M time frame that’s usually 6 to 8 pips. If it’s less than 6 pips I don’t trade and wait for the next set up.
I’ll post up a trade I took a few days ago on the daily time frame using this strategy. It works on every time frame so it’s worthwhile to browse each time frame as you sit down to trade.
The indicators don’t draw arrows, he drew them in manually so we can visually see where he’s placing trades etc…
The daily pivot point is an indicator, usually shows the daily pivot point, along with major support and resistance levels.
The daily pivot point is simply the average price of the previous day.
Pivot Point = (Yesterday’s High + Yesterday’s Low + Yesterday’s Close) / 3
For more info on the indicator visit this website. Pivot Points - Technical Analysis
Here’s a recent setup on GBPUSD Daily time frame. This trade was made 7 days ago, July 20th, 2012.
An easy 78 pips. I entered the trade at 1.0 lots, so I made $780. Not too bad for 2 mins of time, don’t you think?
You can see the price go into the overbought zone at the candle close prior to the red arrow. At the close of the red arrow, the candle left the overbought zone, and went lower than the previous candle. It also closed under the red megatrend. This is a clear set up.
If you look at the screen shot, another short trade set up was possible in June. Landed me 123 pips. That’s over $2000 in two months on GBPUSD Daily time frame alone.
Intraday trading can be just as profitable, if not more so than the daily TFs. This just goes to show that taking a minute of your time to check the daily’s real quick may be worth your time!
Do you change the settings on the indicator based on what Time Frame you’re looking at, like blizard posted on the 1st post?
Do you think there are more trade opportunies the lower the Time frame goes, for instance more on 1 min TF, than 5 min TF?
As far as the ATR I wanted to see if using 1X the ATR is about the same as your average first TP using the fibs, or what average percentage of ATR the first and 2nd TP seem to be? It may not be very comparable, but I was just seeing if there was a simpler way, because it’s kinda subjective where to draw the fibs from-to…also do you use the 100 fib for first TP, and 161.8 for the 2nd?
thanks
Pip, thanks for the info about the ATR. I’ll look into it and get back to you. I agree, drawing fibs are highly user subjective. I may draw them slightly different than you, and someone else might draw them completely different. I use the fractal indicator as well, the only problem with that, however, is it is slightly lagging - which means the fractal may be painted a few bars too late. If you look at my SS, the most recent trade, the price hit the upper bollinger band, along with entering the OB zone. Once the price reversed, I drew my fib from the low to the high where the price hit the upper band. A couple of candles later, a fractal was drawn thus confirming my ‘top’ and making my fibs great.
For my entry, I use the 100.0 fib level +/- 20 pips. The 161.8 and the 261.8 are my T1 and T2 respectively. My stop is the 0.0 +/- 10 pips. As you can see in the two trades above, the price hit my T1 and turned around hitting my breakeven points.
I’ll take a quick look at the ATR and see how it differs from the Fibs. If it’s comparable, it’ll be a lot easier to determine TP and SL levels.
As for changing the indicators settings, no I don’t change them. The CCI indicator is very versatile, and the same settings work great no matter the time frame, and megatrend is used to simply show the general direction of the trend.
There are definitely more trading opportunities the lower the time frame, but you run into more ‘noise’. I typically trade the asian session between 8:00pm EST to 10:00pm EST using GBPUSD, AUDUSD, USDJPY and EURUSD on the 5M, 15M, 30M and Daily time frames. Again, with an alerting indicator such as TradeBuilder, I don’t have to be glued to my trading platform. I suggest you google for an alerting CCI indicator. It’ll keep your trading times short but profitable.
I don’t use that indicator. I think it just tells you how much time until the current candle closes. Correct me if I’m wrong.
Here’s another screen shot of GBPUSD zoomed out a bit so most of the year is displayed. I’m 6/6 so far this year on GBPUSD using this method, and up +886 pips for virtually doing almost nothing.
Again, the setups don’t occur often, but you can be confident that they are high probability trades. The first trade on the far left of the screen came 15 pips from hitting my stop loss level before it turned around and hit my first target.
Remember, I draw my fibs from the close of the current candle that exited the OB/OS zone, to the nearest swing high/low.
There is also a signal from Trade Builder that I did not enter into because the CCI was no where near the oversold zone. Not sure why this happened.
Just an observation I noticed as well, it seems higher probability of a good trade IF the price makes contact with the bollinger band. In the case of a long position, if it hits the lower band, and vice versa for a short.
Folks, here’s a screen shot from EURUSD 5M chart from July 26th, 2012.
The vertical red line represents the time I sit down to trade, 8:00pm EST. My broker is GMT+2, hence the 3:00 time. I finish trading at 10:00pm EST, or 5:00 broker time. So the red arrows to the right of the 5:00 point you can disregard, because I disregard them too!
For this particular trade, since the distance between the 100.0 Fib and the 161.8 fib levels is only 3 pips, if you included the spread, I would have broken even. In this type of scenario where the distance between the two won’t give you at least 2 pips profit, I switch to the 261.8 fib and 423.6 fib as my targets. Often on the lower time frames you’ll see this happen.
Instead of breaking even, I made 5 pips (8 pips between 261.8 and 100.0 -3 pip spread)
Price went on to go against my 2nd TP and it ended at the BE point.
On the lower TF’s I sometimes use the Megatrend line itself as the stop loss level. In this trade, I did. A tight 7 pip stop was used.
On trades where the recent swing high/low is much greater, then I use that for my stop.
The bottom indicator is just the ATR, was comparing the differences as suggested by pip in previous posts.
This is a very powerful, and EASY system people. Learn it. Live it. LOVE IT!
